Best Cheap Home Insurance Companies In Chapel Hill, NC

The best cheap homeowners insurance policy is offered by State Farm.

min read
Updated: 23 December 2023
Written by
Bob Phillips
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Areas of North Carolina experience severe weather such as tornadoes. Tornadoes can cause serious damage to homes, including those in Chapel Hill. As well as tornado damage, homeowners in Chapel Hill are also at risk of experiencing crimes that have been committed against their properties.

These factors mean that home insurance for property owners in Chapel Hill can cost an average of up to $6,500 per year – a huge jump when you consider the state average at $1,500 per year. This is why homeowners in Chapel Hill are eagerly searching for the cheapest policies, with the best coverage. To help Chapel Hill’s homeowners, our team did a comprehensive deep dive into multiple insurers and found State Farm offered the best policy at the cheapest rates – with a cost of $2,807 per year.

We found State Farm to be the best insurer overall, however, this is dependent on an individual’s situation, as other insurers may offer a better suited policy. During our research, we found that Universal North America offer the most competitive rates for newly constructed properties, yet Allstate offers a better policy for homeowners wanting additional personal property coverage. We also discovered that USAA offers the best policy for military members and their families, North Carolina Farm Bureau offers the best customer service, and Heritage offers the best home insurance for people with a poor credit history.

Best Cheap Home Insurance Providers In Chapel Hill, North Carolina 2024

Best Home Insurance, Chapel Hill 2024

Comparing The Cheapest Home Insurance Companies In Chapel Hill, NC

Overall Rating Best For J.D. Power Rating Average Annual Cost AM Best Rating Get A Quote
State Farm
4.9

Cheapest Overall

829

$2,817

A++

Instant Quote
Universal North America
4.6

Newly Constructed Homes

Not Rated

$2,482

B++

Instant Quote
Allstate
4.7

Extra Personal Property Coverage

815

$4,845

A++

Instant Quote
USAA
4.9

Military Families

884

$2,782

A++

Instant Quote
North Carolina Farm Bureau
4.5

Customer Service

Not Rated

$2,918

A

Instant Quote
Heritage
4.4

Poor Credit

Not Rated

$4,967

Not Rated

Instant Quote
Scroll to see comparisons

Our Study

To find the company offering the best rates for home insurance in Chapel Hill, we looked at various review sites as well as rates from public filings obtained by Quadrant Information Services. From these findings, we took an average for the purpose of this review. Please note that rates for each provider may vary and will change depending on your own circumstances.

I worked as a licensed insurance agent for over 10 years, and therefore used my own experience when conducting this research. Additionally, I have purchased my own home insurance for over three decades –also contributing to this analysis.

42

Quotes Analyzed

15+

Years Of Industry Experience

23

Brands Reviewed

29+

Research Hours

Best Cheap Home Insurance Providers In Chapel Hill, NC


Cheapest Overall

Overall Rating
4.9

Key Statistics

10/10 Affordability
9/10 Customer Reviews
9/10 Claims/payouts
10/10 Coverage Level

Why We Like Them

Our research found that in Chapel Hill, State Farm offers the cheapest insurance, despite having high overheads due to the size of the company. State Farm offers cheap rates along with superb policies, regardless of the amount of dwelling coverage selected.

The annual rate quoted above is for a $250,000 dwelling coverage limit – which is typically the amount of dwelling coverage purchased in North Carolina. For higher dwelling coverage, State Farm still came out on top as having the cheapest rates – with dwelling coverage limits going up to as high as $3 million.

Benefits & Drawbacks

Benefits
  • Several licensed agents located in Chapel Hill on hand to assist with claims and provide support
  • Cheapest rates of all the insurers reviewed by us
Drawbacks
  • Fewer discounts offered to customers in comparison to other providers
  • Discounts for first-time homebuyers not available
  • Discounts for policyholders who have gone a year without claiming are not available

Cheapest Overall Rates In Chapel Hill

Company Rate Per Year
State Farm $977
USAA $1,769
Auto Owners $2,037
Allstate $1,780
Heritage $4,969

Best For Newly Built Properties

Overall Rating
4.6

Key Statistics

10/10 Affordability
9/10 Customer Reviews
8/10 Claims/payouts
8/10 Coverage Level

Why We Like Them

Universal North America offer the best rates for newly built properties. Purchasing home insurance for a recently constructed home in Chapel Hill works out to be far less expensive than if it were for an older property. This is mainly due to the materials used in older buildings being more likely to deteriorate, and therefore potentially cause damage which can ultimately lead to a claim.

A modern property in Chapel Hill would typically cost around $5,000 per year to insure, whereas a property built in 2000 would cost around $6,500 annually to insure. Of all the companies we researched, Universal North America is the only provider that did not come with a J.D. Power rating and received the lowest AM Best Rating (B++ Very Good).

Benefits & Drawbacks

Benefits
  • Cheapest premiums in Chapel Hill for newly constructed properties
  • Large number of customers in North Carolina
Drawbacks
  • Lowest AM Best rating of all the insurers we analyzed
  • No rating by J.D. Powers for customer service

Cheapest Home Insurance Overall For Newly Constructed Homes

Company Rate Per Year
Universal North America $2,482
Travelers $3,100
Allstate $3,577
Heritage $3,871
MetLife $3,973

Best Provider For Additional Personal Property Coverage

Overall Rating
4.7

Key Statistics

10/10 Affordability
10/10 Customer Reviews
8/10 Claims/payouts
9/10 Coverage Level

Why We Like Them

While researching insurers in Chapel Hill and seeking the policies, Allstate stood out as the best provider for extra personal property coverage. Allstate offers competitive rates for standard dwelling coverage, as well as for people with homes of a much higher value, who pay more for personal property.

A standard insurance policy provides a level of coverage for personal belongings; however, it isn’t quite enough for policyholders with expensive belongings such as artwork, antiques, and electronics. In Chapel Hill, it costs an annual rate of $6,565 for personal property limits of $100,000. This increases to $7,555 annually when limits are raised to $250,000.

Benefits & Drawbacks

Benefits
  • Consistent positive reviews from J.D. Powers
  • Large Allstate agent presence in Chapel Hill for both sales and service
  • Several discounts available on offer to its customers
Drawbacks
  • Below average J.D. Powers homeowners’ insurance customer satisfaction score

Cheapest Overall Rates In Chapel Hill

Company Rate Per Year
Allstate $4,845
Travelers $4,995
Heritage $5,718
MetLife $5,870
Auto-Owners $6,318

Cheapest Insurance For Military Families

Overall Rating
4.9

Key Statistics

10/10 Affordability
10/10 Customer Reviews
8/10 Claims/payouts
9/10 Coverage Level

Why We Like Them

Statistics show that North Carolina ranks fourth for the most active military members in the United States. A separate study from 2018 taken by Carolina Demography, revealed that there were around 700,000 veterans living in The Tar Heel State. For residents who fall into either one of these categories looking to purchase home insurance, they can apply to become a member of USAA, and therefore apply for a home insurance policy.

USAA may only be available for a limited group; however, it consistently ranks high for customer satisfaction, as well as having a high number of returning customers renewing their home insurance policy. It’s important for many service members, both active and retired, to be a part of a community – USAA has established itself as a reputable provider, offering excellent customer support and rates for its customers.

Benefits & Drawbacks

Benefits
  • Coverage available for homes of a high-value
  • Membership enables access to other USAA services, including banking
  • Additional coverage available for replacing military uniforms
Drawbacks
  • Limited in who can apply
  • Getting a quote requires an active USAA membership

Cheapest Rates For Military Members And Their Families

Company Rate Per Year
USAA $2,782
State Farm $2,817
Universal North America $3,186
Travelers $3,899
Allstate $4,198

Best For Customer Service

Overall Rating
4.5

Key Statistics

9/10 Affordability
10/10 Customer Reviews
8/10 Claims/payouts
8/10 Coverage Level

Why We Like Them

For homeowners in Chapel Hill looking to buy a policy with a local provider offering the best customer support, North Carolina Farm Bureau beat its competition. North Carolina Farm Bureau is the second largest home insurer in the state, with a huge network of licensed and local agents committed to helping the homeowners of Chapel Hill and North Carolina.

North Carolina Farm Bureau does not have an online quote tool. What they do have is an AM Best financial strength rating of A (Excellent).

Benefits & Drawbacks

Benefits
  • Fantastic customer service provided by local agents
  • Most competitive rates across North Carolina
Drawbacks
  • No online quote tool
  • Few discounts available to customers

Best For Customer Service

Company Rate Per Year
North Carolina Farm Bureau $2,918
Universal North America $3,186
Travelers $3,899
Allstate $4,198
MetLife $5,870

Best For Poor Credit

Overall Rating
4.4

Key Statistics

9/10 Affordability
9/10 Customer Reviews
9/10 Claims/payouts
9/10 Coverage Level

Why We Like Them

Unlike many other states, North Carolina allows your credit score to be used by insurance companies when calculating your rates, including the people of Chapel Hill. If someone has a poor credit rating, rates do tend to be higher as they are seen as more of a risk.

An individual could pay $11,000 per year for their insurance if they have bad credit, yet an individual with good credit will pay around $6,500. If your credit score improves whilst being a policyholder, an insurer may recalculate your rates.

Benefits & Drawbacks

Benefits
  • Cheapest rates for people with poor credit
Drawbacks
  • Not rated by either AM Best or J.D. Powers
  • Company’s ability to financially withstand multiple claims at one time is unknown

Cheapest Rates For People With Poor Credit

Company Rate Per Year
Heritage $4,969
Universal North America $4,989
Travelers $5,081
Auto-Owners Insurance Co. $5,490
State Farm $5,822

Deciding On The Best Home Insurance For You

When looking for the most affordable insurance in Chapel Hill, we recommend that you research your options. There are many providers on the market who offer inexpensive policies with good coverage. We chose six insurers in Chapel Hill offering a policy with good protection for both your home and its contents. Consider the following when deciding which insurer to go with –

Consider your property: When asking for a quote, you will be asked to provide detailed information on your home. This will include details such as the age of the property, materials used during construction, and the age of the roof. Have this information readily available when applying to ensure that your quote is accurate.

Consider insurers: Choose wisely when it comes to purchasing home insurance as you want to be sure that the company meets all your requirements. Begin by researching a couple of companies, including checking out their website. If you’d rather handle your insurance errands online, ensure the company allows you to make payments or submit claims either through their website, or an app. If you’d rather deal with your insurance business in-person, opt for a company with local agents in Chapel Hill.

Gather quotes: We suggest getting quotes from a select few insurers to ensure to help you make your decision. You can apply for a quote either online or via an agent, depending on the company. When doing so, be sure that each of the requests are matching so that you can compare the quotes sufficiently.

Choose the company that best suits your needs: Each person’s circumstances are unique, meaning some companies will be better suited to you than others. Some companies may offer more discounts, whereas another company may provide a better level of customer satisfaction. It’s important that you do your research to help you decide which insurer is best for you and your needs.

Largest Home Insurance Providers In North Carolina

Rank Insurance Company Direct Premiums Written
1 State Farm $513 Billion
2 North Carolina Farm Bureau $377 Billion
3 USAA $130 Billion
4 Allstate $122 Billion
5 Erie $103 Billion

Average Cost Of Home Insurance In Chapel Hill, NC

In comparison to the average annual rates in North Carolina, as well as the rest of the United States, Chapel Hill is significantly more expensive. Although, all the major companies, including much smaller ones, operate in North Carolina. Here are the average annual rates for five of the major home insurance companies in Chapel Hill.

Company Rate Per Year
State Farm $2,817
Universal North America $3,186
Travelers $3,899
Allstate $4,198
Heritage $4,969

Average Cost Of Home Insurance By ZIP Code (Coastal North Carolina)

Zip Code Average yearly cost
28574 $10,289
28516 $19,269
28540 $10,281
28478 $10,629
28462 $11,488

Average Cost Of Home Insurance In North Carolina By Coverage Amounts

Dwelling coverage amount Average yearly cost
$100,000 $682
$200,000 $1,113
$300,000 $1,678
$400,000 $2,110

Average Cost Of Home Insurance In North Carolina By Deductible Amount

Deductible amount Average yearly cost
$500 $1,839
$1,000 $1,675
$2,000 $1,534

Getting An Online Home Insurance Quote In Chapel Hill

Getting an online quote for home insurance in Chapel Hill can be done in the following steps:

Step One: Decide on the amount of coverage needed. If you’re unsure of how much personal property liability protection is needed, go through your belongings, and take a detailed inventory. Recording a video of your property can also be useful in the event of a claim.

Step Two: Choose three companies and request quotes. You should get in touch with three insurers and request a quote, either through an insurance agent, or using an online quote tool.

Step Three: Be certain that you’re getting an apples-to-apples price from each company. The coverage limits and deductible should be the same in order for you to make an informed decision.

Step Four: Decide which provider you think will best suit your needs, and then apply.

Factors That Impact The Cost Of Your Home Insurance Policy In Chapel Hill

Home insurance providers use numerous different factors to determine how much of a risk they believe you to be. The higher the risk, the higher the premiums. Below are some of the factors that can result in increased rates.

Location. When calculating your rates, providers will look at factors as specific as your ZIP code. Meaning if you live in an area of Chapel Hill where more claims are made, the provider will charge you more.

Coverage amount. The value of your home and its contents, and how much they are insured for will have an impact on your rates, meaning you will pay more if the value is higher.

Credit history. Providers in the state of North Carolina can use your credit rating to help calculate rates. Providers typically charge more when someone has poor credit as statistically, a poor credit history means a person is more inclined to make a claim.

Claims history. If you’ve filed a claim before, providers have found that you’re more likely to file a claim again in the future.

Your home’s age. Insurers will consider the age of your home, as the older the building, the more likely it is that aging materials will lead to damage to electricals or plumbing systems. If these systems are beginning to deteriorate, then it could pose a fire or water hazard – which ultimately leads to a big claim.

Deductible. If your deductible is higher, then your rates will be lower, however, it’s important to opt for a deductible that is affordable to you and your budget.

For Chapel Hill homeowners, there is a high risk of damage to properties because of the threat of severe weather. As a result of this, rates in Chapel Hill are some of the highest in the state of North Carolina.

North Carolina Home Insurance Laws To Be Aware Of

Home insurance is not essential for homeowners in N.C., however, anyone with a mortgage, or belonging to a Homeowners Association (HOA) may be required to get it.

In The News

WTVD in Raleigh reports that North Carolina homeowners are witnessing their premiums rise at a rapid rate, mostly due to the cost of lumber increasing by 21% over the past year, and roof costs being 22% higher. An early 2023 report predicts a 9% increase in rates in 2023.

Information About Chapel Hill

Home to the University of North Carolina, Chapel Hill is a multicultural town bustling with students. A resident population of 59,000, Chapel Hill has been dubbed as ‘America’s Foodiest Small Town’ by Bon Appetit Magazine. Rapidly proving itself to be a mecca for American cuisine, Chapel Hill is an edgy, trend-setting playground full of sounds and tastes.

Interesting tourist destinations in Chapel Hill include the North Carolina Botanical Garden, Ackland Art Museum, Carolina Basketball Museum, and Morehead Planetarium and Science Center.

Home Insurance Discounts In Chapel Hill

With high insurance rates in Chapel Hill, insurers often provide discounts that homeowners are encouraged to take advantage of. Consider the following when discussing options with an agents, as your house could very well save you some money. Below are just some of the ways you could be eligible for a discount:

New or renovated home discount. Newly built houses or those that have been recently renovated are often eligible for discounts due to upgraded systems being less likely to fail.

Disaster preparedness discount. If you live in an area like Chapel Hill that’s susceptible to storms, your insurer could offer you a discount if you take the steps to reduce any risks of damage. Installing features such as storm shutters, reinforcing a door, and adding shatterproof glass can reduce the risk of damage caused by high winds.

Safety and security discounts. You could be eligible for a discount if you add the following devices to your home: smoke detectors, fire extinguishers, fire alarms, burglar alarms, sprinklers, water shut-off devices, and deadbolts on exterior doors.

Proximity to a fire hydrant or fire department. A home insurance company may offer a discount if you live within a proximity of fire-damage control resources.

Roof age discount. Roof repair costs are substantial loss-leaders for home insurance companies. USAA offer discounts based on the age of your roof.

Military discounts. If you’re an active military member, a veteran, or family of a military member, you may be able eligible for a discount.

Employment, organization, and association discounts. A home insurance company may offer a discount for people working within certain industries, such as educators. You may also be eligible if you are a union, organization, or professional association member.

Seniors or retirees. Some home insurance companies offer a price break if you’re retired or aged 55 and above and working part-time. To be eligible, the home must be your primary residence, you must be over the age of 55, and work outside of your residence for less than 24 hours a week.

Bundling discount. You could receive a discount for having multiple policies with the same company.

You can also save money on your insurance by raising your deductible and keeping a good credit score.

FAQs

How much is homeowners insurance in Chapel Hill?

The cost of insuring your home in Chapel Hill averages over $6,500 per year, compared to the state average of $1,500. Our research revealed that in Chapel Hill, State Farm offers the cheapest and best insurance at $2,807 per year.

Why is homeowners insurance so expensive in Chapel Hill?

Home insurance premiums tend to be higher in Chapel Hill due to its risk of severe weather.

Who is the largest home insurer in Chapel Hill?

State Farm is the biggest insurer in the United States, including Chapel Hill.

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